Bitcoin Surges 4% to $109,163 as Bull Flag Pattern Signals 25% Rally

Bitcoin's price has recently surged past $109,500, marking a significant upward momentum. This movement has sparked anticipation among traders and analysts who foresee multiple bullish signals that could propel the Bitcoin price to $137,000. The bull flag pattern, a technical analysis tool, has been confirmed by veteran trader Peter Brandt, 10x Research, and other analysts, indicating a potential for a parabolic rally in July.

10x Research, in a recent analysis, set $135,000 as the price target for Bitcoin, citing a breakout above the bull flag pattern. The analysis highlighted strong Bitcoin ETF flows, shrinking crypto exchange balances, and intensifying political pressure on the Federal Reserve to cut rates as contributing factors. Additionally, the analysis pointed out Bitcoin's repeated attempts to break above the critical $110,000 level, with bullish setups observed in December, January, May, and June. Markus Thielen emphasized the critical setup with July's historically bullish seasonality and the impending labor market data.

Veteran trader Peter Brandt shared an inverse Bitcoin price chart on July 3, which initially confused the community but was later understood to point out a bull flag pattern formation in the daily BTC chart. This pattern confirmed a potential for a parabolic rally in Bitcoin's price, with the chart hinting at an upside move to at least $140,000, although Brandt did not specify a price target.

Other analysts, such as Titan of Crypto, also predicted a significant rally in Bitcoin's price, setting a $137,000 target based on the bull flag pattern breakout. This prediction was supported by a bullish MACD crossover in the daily timeframe. Additionally, Matrixport revealed that July has historically favored Bitcoin, setting $116,000 as the initial target. The analysis noted that an upside move in Bitcoin is crucial to confirm bullishness, as evidenced by Bitcoin ETF inflows and rising corporate Bitcoin holdings. Over the past decade, Bitcoin has rallied in seven out of ten Julys, with an average gain of 9.1%.

Bitcoin's price surged 4% in the past 24 hours, trading at $109,163 at the time of writing. The price ranged between $106,155 and $109,763 during this period. The Relative Strength Index (RSI) rose to 60, indicating potential for further upside moves. The price was above the 50-SMA, 100-SMA, and 200-SMA, suggesting a strong bullish trend. Massive buying in the derivatives market was also observed, with the total BTC futures open interest jumping 8% to $74.94 billion in the last 24 hours. This signals bullish sentiment among derivatives traders.